City of Portsmouth, New Hampshire Audit Committee, 30 Dec 2021

Previous Meeting Next Meeting

⏯

youtube image

►

From YouTube: 12.30.2021 Audit Committee

Description

12.30.2021 Audit Committee

A

Okay, thank you. So uh we are recording um yeah, give shut the door yeah sure. Thank you.

A

uh Councillor kennedy uh welcome, thank you and I um I'm will you taking attendance. I need to let.

B

Everyone know my father, edward kennedy is in the car with me. Okay, is he taking notes.

A

Okay call to order for the audit committee for our last meeting of the year december 30.

A

At 1 pm public meeting in conference room a of city hall.

A

I'd like to do a roll call, please so counselor kennedy.

B

Here, counselor huda here hawk furman here jesse lynch here and chair white, is also here.

A

I'd like to I have a motion made please to approve the december 15 2021 minutes.

A

As written so moved, second discussion.

A

Hearing note to do a roll call, yeah hearing, no discussion, I'd like to take a roll call vote.

A

uh Counselor kennedy here: hi yeah, sorry, do you do you approve or.

A

What's, how is your vote how's your vote on the minutes to accept them? Yes, thank you. Councillor.

A

Huda, yes, uh mr fuhrman, yes, mr lynch, um do I vote. I wasn't here. Well, it's a good question.

C

To know what transpired um yeah, you have to abstain, I think so, um and uh chair white approves.

A

Thank you so uh now I'd like to welcome jesse uh lynch and jesse, do you want to take a couple.

A

Minutes and just introduce yourself, please sure so, happy to be here looking forward to.

C

Contributing uh and working with everyone um a little bit of background I've been in.

C

Portsmouth for 10 years originally grew up in mont vernon about an hour west of here was in.

C

Boston for a while and been in portsmouth for 10 years planned to be here for a while three kids.

C

In the schools here uh I started my career in commercial, real estate lending.

C

A td bank and with some insurance companies in boston and now I work for prime buckholds, we're.

C

Investment consultants over at peas, serving endowments foundation's private wealth groups.

C

And I uh I'm a principal there and I chair the real asset investment committee, so so bitcoin gold.

C

The bitcoin, I know that that's coming up a lot, we'll we'll discuss evaluation models.

A

After the meeting um and importantly you're also a cfa- I am a cfa yep, and uh how do you.

A

Feel that the cfa contributes to this process yeah, so um cfa is a rigorous.

C

Three test um course, and it's really focused on.

C

Everything financial, so unlike an mba, it's not focused on marketing and other aspects.

C

Of business is really focused on valuations financial reporting, portfolio management.

C

Ethics um and so very rigorous and spent a lot of time with that and apply what I learned there on.

C

A daily basis at prime buckles, so I think it's I think it's relevant we're constantly evaluating.

C

Outside firms um interviewing them um reeling really looking to find out if their processes.

C

Are sound if their governance is sound, their management team can repeat what they've.

C

Done in the past- and I think that applies to kind of evaluating audit firms and really.

C

Looking at the process by which we um hire monitor and retain them,.

A

Good, thank you I I would agree. I think it's I mean I'm uh I'm uh guilting the lily here, but.

A

My own lily, but being a cfa, but I think it's a very important and rigorous training. Yeah.

A

A

uh Does anyone have any questions of jesse or which mutual funds he's recommending or no sure.

D

Well, I mean just welcome, thank you glad to have to finally have a full committee on board.

D

Great and uh as you know, uh myself and counselor kennedy will be uh winding up.

D

Yeah in two days, yeah, so thank you for uh your service yeah. You guys worked hard wow.

A

So, interestingly, uh one of your neighbors, you said, was vince lombardi, so you're.

A

So you've got knowledge of the incoming council.

A

So I'd like to move on to upcoming tasks, if we could please- and there are three here- that I've.

A

Highlighted I'd like to move the initiatives to the end, if I could please, and so we have.

A

B is the presentation of the aqua report, which is the old, comprehensive.

A

What was it accounting financial report.

A

For this past fiscal year and that's going to be on january 13th at 6 30 in the evening at.

A

City hall and we're all invited by the mayor to attend so it'll be important for us to be there.

A

And I don't know frankly what role, if any we will have in that meeting, except to.

A

Listen and take notes. um I would hope that we might be able to make some comments, but.

A

That's really up to the mayor as to how he wants to structure that.

A

Then any comments or questions about that.

D

I have a question um I, in reference to the.

D

The email that you had received from from the city manager.

D

um uh Basically, she was making you aware of the work session and she said we anticipated that the.

D

Annual comprehensive financial report with the opinion of the auditor will be distributed.

D

To the city council and the audit committee approximately one week before the work session.

D

And is that going to be distributed? I I guess electronically yeah, I'm hoping so.

A

Because that will be the sixth so.

A

uh If it's electronic, then I and and it's only to me, then I will obviously.

A

Turn right around and forward it to all of you right and she made it perfectly clear.

D

That there will be no distribution of anything to the audit committee in advance of the meeting.

D

So um I guess we don't really have a choice there because they are still controlling the.

D

Motions of the external auditor, but generally generally the audit committee should have this a.

D

Little before to review it, and since our job, your job is going to be to advise the council on this.

D

um That would that would that was the main purpose of having it in advance. Yes, so I just want to put.

A

That out highlight that. Well, it's it's a little confusing because um she she talks about the.

A

Hack for being distributed a week before, but then there's not going to be any distribution of.

A

Documents so which documents is she referring to? Is it the act for a report? It doesn't seem as if.

A

Since that's supposed to be distributed to us a week before, then, what documents.

A

In addition, might we expect well, if I, if um the past two years are any.

D

um Preload, it would just be the management letter at that time: okay and then the um and from this.

D

I can't tell, but um generally when the council is involved, this was in your regular council meeting.

D

And um at that time the the principal from the audit firm would it would take any questions or.

D

um You know just make a statement on anything they found because I do recall.

D

Last year I did have questions uh if you go back and look at the uh at the present video.

D

So um I would think at that time, if the audit committee had any questions um that would be.

D

The time to do that, but I, since this is a new process, I do not know how that's gonna work.

A

Right well, it may be that that we want to as soon as we receive the act for a week before.

A

We may want to collect any thoughts and comments prior to the january 13th meeting.

D

Right right for discussion for discussion.

A

Jesse hawk knows this, then I should let you know that on next.

A

A week from today, I have heart surgery, they're, going to go in and do an ablation on my heart.

A

And I'm told that it's you know pretty routine. I hope not. No one else here has to have one, but.

A

uh Good luck, yeah, thank you, so um so we'll be doing that down in boston at mgh, yeah.

A

Yeah, I can't think of any other place. I'd want to have it done.

A

Except we're told we can't, I can't spend the night after surgery in the hospital, because.

A

Because they're so concerned about covet wow well, the good news is that I then get to spend the.

A

Second night, with my wife at the whitney hotel right around the corner, which is the liberty.

A

uh It's close to the liberty. Okay, you know, that's the whitney yeah smaller, but.

A

And alice assures me that we'll get room service so.

A

But anyway, so I've got that and then I'll be recovering for the next few days.

A

But so I will try to get back in the saddle as quickly as I can okay. So if I get if I get.

A

This akford report on on thursday, it may be friday before I get it out, everybody.

C

Yeah yeah: okay, good luck! Thank you wow, um but I would. I would also suggest that you go online.

A

On to the city website and look at this last year's kafir report just to give.

A

You a sense of what we're talking about, um and I I have a hard copy of it here.

A

Because I was trying to use up trees, but this is the.

A

So this is what it wow. Yes, sadly, the printer was on one side, but anyway,.

A

um And peter and asked her if you had.

A

Thoughts of things to be looking for that would be helpful to hear.

B

Yeah, I think everyone's on the right track. I really appreciate.

B

Sounds like jesse's, the perfect person for the committee. Thank you for serving and thank.

B

You for uh helping florida, I really like the background and right now I don't mean advice.

B

But I I think that uh you know one of the things the community really needs to do is make sure.

B

That the council is informed, however, with that information also give your perspective and.

B

And that's one of the great things about this committee that council huda.

B

um Started and and I'm glad it's now- an ordinance.

B

um So I guess that would be what I have to say. Thank you good. Thank you.

A

Okay, um so then uh item c.

A

uh The rfp, as it was sent out, gives a deadline to the proposers of february 3rd for uh responding. So.

A

Theoretically february 4th our work starts and I have no idea how many proposals we'll receive.

A

My hope is that we'll get five anyway um and what list did they uh was used for that.

C

Rfp process good question um I I gave I collected as I mentioned at lunch, I I collected five cpa.

A

Firms in massachusetts, I heard that there were two uh new hampshire firms. Malinson, I'm sure is one.

A

And then there is, there are two other smaller firms over in the concord area.

A

Something plodnic I'm showing my ignorance.

A

Pl plotnik, I think, is one firm and I can't remember the second one. Frankly, as as I looked.

A

Through those firms, my sense was that they were pretty thin in terms of staffing and that they.

A

Would not be able to handle a reappointment if, if they're you know to uh for for rotating coverage,.

A

um But we'll you know that will should all come out in the proposal.

A

um So we should be able to get a sense of that.

A

So the then, if we go back up to the initiatives, there are two items here.

A

That that I want to bring forward one is that the way the city views our role.

A

Our role our duties stop at recommending the accounting firm to city council.

A

Based on the rfp, the proposals that we see.

A

But for my money, um that's really half of the relationship, the other half that's defining.

A

Is what what does the contract look like, and I know last spring when uh counselor, huda and.

A

And and we worked on the rfp, uh the real work started with the contract um and that that.

A

Really was took several iterations with melons and melonson was happy to simply give us a letter, a.

A

Scope of work letter and that that previously had constituted their contract and the gfoa is very.

A

Clear- and it was clear by the time we were done- negotiating the contract that the scope of work.

A

Letter is totally inadequate for for um defining responsibilities, so um I am very interested in.

A

Pushing to have us have our involvement, extend at least through the negotiation, with the contract.

A

Because I think we, as we did last spring and councilor huda, was a bulldog. If I may.

A

In that regard of making sure that the city's interests were protected and I think by the end.

A

Of it attorney, woodland was very appreciative of everything that that you, especially counselor huda,.

A

Did, and so I think that our job does not stop where the city would like it to, and so I will.

A

Continue to advocate for our involvement, at least through the negotiating of the contract.

D

Any comments yeah yeah, I'm since both hawk and and jesse, were not here.

D

Just a little overview of what occurred last year,.

D

Basically, we looked at the rfp that had been posted, and it was not. It was like, like chair, said.

D

Basically incomplete the committee pulled it in with the help of suzanne and.

D

We put out a new rfp, we developed the process uh for reviewing the contract because.

D

um After you put the rfp out when you go to review the proposals.

D

You're you're reviewing them based on criteria, technical and cost criteria, but.

D

The the follow-up to that is, does the contract say what what the rfp did and what they're.

D

Presenting to us is is matching so the I from my perspective, the contract is very important.

D

Because it is a follow-up of the rfp that and what was actually stated to the proposers that.

D

Their their duties and their tasks would be to to get to the end result. Obviously, but last year we.

D

We did the rfp, um we went through the contract and um the the involvement of the city was not.

D

How should I say the odd the goal of the audit committee was not to overstep and take over the.

D

Processing the processes that purchaser would have had out putting out the rfp it was just to.

D

Put in the expertise of this is this is kind of a specialized contract that, personally, I wouldn't.

D

Expect a purchasing person to understand all the all the stuff that was put in there yeah and.

D

So when we moved from getting the and we only had one as you know, we only had one proposal put in.

D

Because of the timing and uh when we came back and started looking at the contract and we had been.

D

Given a standard contract to look at that usually goes out with um all kind of other services.

D

Engineering and everything else, and that that was our model and we started from that and pulled in.

D

All the rest of the um of the information from the rfp, so that it in my mind, it's really hard to just.

D

Pin the audit committee down to um you review you just pull it out of the air and say you you.

D

Review the proposals and make a recommendation to the council and you're done right. That.

D

There's a process here to pay for it yeah to get there and um that that is uh where you know.

D

The chair and I and I I'm sure, counselor kennedy- agrees, uh that's where we're coming from yeah and.

C

um The city council is turning over now, but is the city council aware of that view today.

C

That view that it should be that thought. In your view, the audit committee should have selection.

C

And contracting oversight? Well that that has been the discussion between um the committee and the.

D

City management right, but not the city council, no down to city council. The city council had.

D

Developed the ordinance and uh we went, we went through all the whole process if.

D

If you go back and yeah painfully go through all the meetings, but um we we uh we, we developed.

D

The um the process and then the ordinance and then um the difference between what was um an interp.

D

What was interpreted by the audit committee and what was interpreted by city management.

D

um Is where we're we're? That's where the that's? Where the uh because I mean the city council.

D

Authorized the committee to come in and bring in the expertise that was the whole point of this.

D

Because um the city council can't be expected to have growing all-knowing financial right.

D

You know there's there's plenty to learn when you're in city council, but um that was the point.

D

Of this to to bring in the financial expertise to help the city council understand what was being.

D

Presented to them yeah so that that's that's kind of the position we're taking we, you know we're.

D

It's not like we're interfering in anything that that management is doing we're here to.

D

Bring in the expertise and then put it back into the process and that's what was done last year.

D

The we we developed, the rfp, it went to purchasing they, they did what they usually do. They brought.

D

Back the uh proposals we reviewed them, there was only one and then we went on to the contract right.

D

So um and after the contract from our perspective was was done, legal department generally negotiates.

D

After that is done, then finance takes over and comes back in and does and goes through the.

D

Audit right and so you're asking that that process continued this year. We believe that you're right.

C

And then, but the only recourse this committee, if I understand it, has, is to go to.

C

The new city council and say you know.

C

Let them know that they should.

C

Weigh in on the topic right is that yes, because, because the the whole point of the.

D

The basis for this was the charter. There there's a charter that section 7.4 says.

D

You need an independent audit. What was happening for 28 years is. The auditor was reporting to the.

D

The city management that was doing the financial statements and there was no independence there.

D

And our our perspective now is, with the last couple meetings we're going back to the same.

D

Procedure right I mean we're just basically you're, just inserting the committee in to say.

D

um We have reviewed the proposals and we um we basically like you, know.

D

Put this in front of you and this this would be the the the proposal we we, we would suggest it.

D

Doesn't mean they have to go with that, but um that that's the purpose of the committee.

D

Yeah is to bring in the expertise to recommend right based on the procedure that we're following.

D

Right so I don't know if you want to add anything else or well, I I think.

A

Can I can I say something: yes, please, okay um is exactly right everything she just said.

B

I think where the disconnect is that um the bottom line is we've had the same auditing.

B

Firm for 28 years, which I think everyone in that room understands, is really inappropriate.

B

And so for, jesse and and chris and the rest of you, the question is: is how do we get it so and that's.

B

Why we voted to have an audit committee, so there could be more turnover, so there could be some more.

B

Looks at it so we could become more in compliance with federal and state regulations.

B

So you know, I guess, when you go to the new council or when you get the two new counselors.

B

Which I think is to kind of clarify the two counselors are going to come to you and then you.

B

Are going to make the statements and then they need to take it back to the counsel, as counsel.

B

Reps, so you know, I think that the purest thing here we need to do is we need to make sure that.

B

We have a turnover of an auditor, and the question for the committee is: how do we make sure that.

A

So um what you're pointing out.

A

Councilor kennedy is is very important in terms of the process for feedback to the council.

A

And and if I understand you correctly,.

A

We we transmit our opinions, our views to the council through the two.

A

New members on the committee is that correct yeah, that's the way you would do and if you.

B

Want to have a meeting with a work session with a council, then you would tell your council reps.

B

That we would like to have a work session and if you all vote for a work session, you know.

B

And then they would just go back and request a work session. I do that. We do that. All the time.

B

For all our committees that were set on so that would be your conduit to the council, but also.

B

That would be the people that would set up a work session to maybe talk about audit concerns.

B

So those would be the two people that you really have to work with to.

B

Put this information back up for us and when does when will those two new committee members be.

C

uh Assigned or selected usually they're at the very first meeting of the year. Okay.

A

um They'd be assigned, but also they would be given you'd be given the information.

B

They would be given information of what committees they're going to be on.

B

From daglan or the city news city, mayor asa, you get that before you even get on council.

B

So we should, they should know right now, who's going to be there who's going to represent.

B

Be on the committee, but but technically they will not be voted in until the first.

A

Meeting of city council- it's not a vote in the mayor- has a right to appoint to the committee.

B

I see that vote now. There might be a courtesy vote, but you can sit on the committees before.

B

And enact before the first council, okay.

A

And I, but it's up to the new mayor, to notify me of the two new council members.

B

Yeah or you could also talk to kelly barnaby about that. So if you just want to put an email.

B

To ask I would I would do an email for the mayor and kelly barnaby and just ask them both.

B

Who will be the new members to the audit committee yeah.

B

I'd include them both on that email, but kelly barnaby is the one that kind of.

B

Keeps track of who's on what committee okay! Thank you. That's very helpful. All right.

A

A

That covers tangentially, perhaps the second item under initiatives, and that is.

A

The uh what what uh we might choose to do with these minutes.

A

um And so what I'd like to do in order to set this up for discussion is to seek a motion.

A

A

Empower the audit committee chair to submit the proper.

A

To the proper state of new hampshire officials, the such material as he deems appropriate.

A

Including, but not limited to the minutes of the december 15 2021 audit committee meeting.

A

And any other relevant material, such as the email correspondence that we've already referenced from.

A

City manager, regarding the upcoming january 13th meeting and the purpose of this pardon me.

B

I make a motion, so you can talk about it. Thank you. Thank you. Second. Okay, thank you. So if we.

A

Could have a discussion around this motion and I would just finish that motion by saying that.

A

The purpose of the submissions would be to seek clarification of the role of the audit committee.

A

In the independent auto of the city's financial records has raised in the december 15 minutes.

A

So I'm I see that presently we are at longer with city management and we need.

A

Some help in terms of clarifying this as jesse and I were having lunch together.

A

You know the issue came up. Why don't you go back to city council for clarification.

A

But I'm not sure that the city council is knowledgeable enough to really weigh in.

A

Appropriately on the pros and cons of what it is we're trying to achieve here,.

A

As well as you know, the qualities that we're seeking, such as independence and transparency,.

A

And so it's a it's a bit of a conundrum.

A

Is to wear best to to turn at this stage, so that's sort of my preamble.

A

Please counselor huda um well.

D

I guess I would say, and I would agree with you, that.

D

Because of the discussions in the last three or four meetings, where um the first statement to.

D

um Be referenced was we do not agree on the role of the audit committee from um deputy city manager.

D

Woodland a lot of committee meetings in the uh in our meetings, yeah generally, the first.

D

Statement was, you know, we don't think you should be doing this or you know you're.

D

Overstepping and that kind of stuff, um I think it still all goes back to the original intent.

D

Of having an audit committee is to have maintain the independence.

D

For from the city management, for one thing and then for the auditor to report to, as stated in the.

D

In the city charter to report to the city council and having.

D

Seen the progress and the steps that have been taken recently by the city staff, it appears to.

D

Me that we are back to where we started, and um I don't know um based on that. If we need a uh a as.

D

Counselor kennedy suggested a workshop to go through and explain um from a financial.

D

Perspective and um from a legal perspective, what needs to be done as far as keeping the audit.

D

First of all, independent from the management that's being audited and then reporting to.

D

The actual city council, and not having everything, go through the staff, as it has been for 28 years.

D

So that's you know, that's my perspective. I think um I don't know if this is a case where.

D

We would have to discuss this, and I mean I hesitate to say.

D

That everybody would need to be educated on this and- and uh you know, come up on this, but you know.

D

As as, in the past and the recent past, I personally purchased all the gfoa books that we need to.

D

Follow uh and handed them out to the council, and um I I was hoping with that information that.

D

You know everything would would make sense, but I'm a financial person and and other people are not.

D

So um basically, um I I suggest we we might do the same thing uh as a well. You might.

D

As a committee um to bring them up to speed on what the gfoa is and the rules that apply here.

D

Plus, adding on the um the numerous accounting and uh auditing sasses and rules and regulations and.

D

All that stuff that we all know well, but it's not familiar information to other people,.

D

So, um as far as that goes, uh it is my opinion and probably the opinion of the rest of the committee.

D

That, um in moving through this, um like I said I I was, I was hopeful and confident.

D

When we went through the first rfp and and brought and went through the whole process,.

D

That we were working towards independence in the last couple of meetings.

D

I I don't see that I see the audit committee being pushed aside and only being relegated to.

D

The review of the proposals and presenting to the council, but there this is like accounting.

D

Accounting, everybody knows, you start with 101 102 intermediate, it adds on and that's the same.

D

Process that is here I mean the original intention here was not to go around city staff was not to.

D

Interfere in anything, it was to bring in the expertise to help facilitate this process. So.

D

I guess the fir my suggestion would be the first thing to would be to.

D

Have a work session, possibly with the with the new city council on and um you know, try to get a.

D

Get get past this this brick wall that we seem to be hitting here and, um if not.

D

The it still comes down to um adherence to the charter and if we can, if, if we can't achieve.

D

That, as an audit committee, then we are back to. We are not in compliance with the charter again.

D

So I you know that that's where that's, where I'm coming from so is your.

C

uh Recommended first step to have that work session before coming to the state counselor.

D

I would yes, I mean, I guess they, you know, the the council is the governing body and they authorize.

D

This committee right we're an animal of a creature right right, so you know that would be.

D

Plus I mean it is, it is the point at which the council is turning over.

D

You're going to get two new committee members um and obviously at this point we don't.

D

We don't know uh what their background is going to be. We don't because we don't know who it is, but.

D

There's going to be, uh you know, kind of a learning curve for them and probably for the for the rest.

D

Of the council but they're, but my guess is- and my hope is that um the mayor elect has appointed.

D

The counselors with the most financial background or or know-how here, so that would be a process.

D

That we would, you know, probably need to follow. I don't know counselor kennedy anything on that.

A

Nope fell asleep at the wheel, counselor kennedy did we lose you.

C

Did she call us, or did we call her? She called she called me okay, so she answered okay, yeah.

A

She may be going in a dead zone. I don't know.

D

Because I mean the whole purpose of this was was to get in compliance with the charter.

D

I mean my I'm not. I wasn't privy to any of those discussions or the history.

C

You guys have brought me up to speed best. You can and the time we've had on seconds yeah, but I think.

C

I mean for the layman, non-financial professional. If, hopefully, if you oh yeah, we've lost her.

C

If we reiterate that it's a return to the process we had last year, which was up to standards right.

C

And the goal is independence, transparency and best practices. It's really important. It seems.

C

Like it would be hard for people to be against that so type of process, and then we compare it and.

C

You and we've done our homework on what is best practice and, what's done at other municipalities,.

C

It feels like excuse me: did she message you by any chance or no? No? Okay? No, we haven't looked.

A

We haven't looked, I haven't gotten anything from her. I haven't either anymore um nope.

C

It seems to me that that would I mean, in my opinion, that seems like the logical first step and.

C

They are who we are a subset of right, that is, who we report up to and then and maybe I'm misreading.

C

It, but if we did do, went to the state right off the bat without consulting them. That could be.

C

Yeah spoil the well a little bit right, expensive or spoil the well in terms of what what's going.

C

On you know, um I can get her number. I can try calling her again, but let me call her.

D

And see what see what the deal is? Excuse me jesse. I agree with you 100 one step at a time: yeah yeah.

C

um We don't want to rock them too hard, yeah well, especially since they're just getting installed.

A

um Now last year was not necessarily the paragon of independence right, so it might not have been.

C

Yeah, it might because we were cut out after the contract was put into place.

A

And, as you see by the email from from the city manager, right.

A

We're not being warmly welcomed into the process at this stage.

A

So it's a hey, we lost you.

D

Oh, you can't get back in. Do you want to try to call again.

D

Okay, do you want me to you want to listen on my phone yeah? You can just put that on speaker too.

A

Maybe let me put, let me no, we didn't do anything yet we're still discussing this. uh Do you want me.

D

To just put you on speaker: okay, okay, okay, sorry about that! I'm sorry! Can you hear us now yeah. I.

D

Can now, okay, she tried twice and she couldn't get through she's she's in some glenn or something.

D

Anyway, esther we, uh I don't, I don't know how much you heard esther, but basically um we were.

D

Just discussing how to how to uh I guess, get the new city council up on what the what the.

D

Processes are uh for the audit committee yeah, I I read most of it and then I got knocked out yeah.

D

I heard all that, oh you did. Okay good, so you know you know, there's a motion on the table. That's been.

A

Seconded yeah, because I made the motion yeah, thank you and the motion is to what I'm saying well just.

A

To uh submit this material to the state of new hampshire, uh yeah and, uh and I think that the.

A

But I wanted I wanted to set that table so that we could then talk about different options and ways.

A

Of skinning this cat to try to build a consensus, rather than uh so jesse you're suggesting we go to.

C

The council first yeah yeah and um following on the councillor's recommendation, I think I.

C

Think it makes sense as a first step, not rocking the boat or not. It's not rocking the boat, but.

C

I think it's a good case to be made to them and if they're re reasonable in their approach, then.

C

It'd be tough for them to say no and if they do say no, then I think you should go.

C

To the school you go to the state, after that I mean if it's clearly best practice. It's all in.

C

The interest of independence and transparency and yeah the council was still refusing to.

C

Go along, I guess it would look a little full to show it's like. I guess I have a.

C

Question for chair, so I I don't mind amending the motion to uh to meet with the council.

B

Counselors, that are being part of the committee and then if they do not have appropriate action.

B

To meet the need, given our last meeting, um we then this committee should go to the state.

B

To make the motion to have the chairman uh second degrees discussion.

C

C

So you're suggesting counselor that uh it's a transmission from the new committee members.

C

To the city council, rather than a work session with the audit committee and the full council.

B

um I think you're gonna have to go to them first for our work session.

A

So uh council, are we asking um for.

A

A work session in our communication: yes, okay, okay yeah. I think what you had outlined before.

A

Counselor was, I thought, very helpful in this uh concept of the work session.

A

And you have to talk to the two counselors that are coming forward to help you get that work.

B

Yes, okay, all right! So um so now we have an amendment. um No it's just a friendly amendment.

A

So the motion's been changed so you're all right, you don't have to revoke twice. Okay. Thank you.

A

So now that now the motion as it stands is that we will.

A

Once the two new counselors are appointed that we will seek a work session with city council through.

A

Those two new members and if that doesn't happen, then the.

B

Chairman of the committee can move forward with action with with the initial motion yeah.

D

Because I think it's very important that we do get clarification.

D

um On what the city management's role here should be, the council did um create the audit committee.

D

For the purpose of um advising them, and um in the last, especially in the last.

D

Few sessions um and in the creation of the rfp, all of that was taken away right, yeah. As far as.

D

For my, in my opinion, I don't I'm not going to speak for everybody, but um and basically.

D

It was moved back to where it was and um I think that needs to be discussed and.

D

I mean it's right back go ahead. I think this vote will do it, but I I encourage you to take the.

B

Vote, if you want me to vote because I don't know how much longer I'm gonna have reception.

D

Okay, you guys are going in and out okay. So so, let's do a roll call, uh counselor kennedy.

A

Yeah counselor huda. Yes, mr furman, yes, mr lynch, um I have a question yeah.

C

um How long are we gonna to give this how much runway today yeah, I I'm not yeah. Thank you.

A

The way it was discussed, it would be uh potentially instantaneous if we got a.

A

If we didn't get our work session, we'd go to the state and I'd like to try to give it.

A

A little bit of time, understanding that there's organizational aspects so okay and then we'll get.

C

Our work session then still have that option. After if we don't yeah, did we lose you? No, we won't. You.

C

She already voted, though right she voted correct, yeah. Yes, we don't would hold that as an option.

C

C

All right I'll vote, yes,.

D

Okay, can I follow up with uh something on this, for this is for the community? uh I still need to vote.

B

Sorry, stepping on my toes sorry, I'm so sorry.

A

Yes, okay, yes, okay! The other thing I would like to put in front of the committee is um the timing on.

D

This will probably be um critical because, uh as the rfp is out that um the city staff put out.

D

Not what the audit committee voted on with the unanimous vote, it will be critical.

D

To when the proposals do come in for the audit committee to follow up on the.

D

On the proposals right and then follow up on the contract, because one is a reflection of the.

D

Other one I I understand, uh so um I think the timing is going to be critical for.

D

For this work session- and it probably should happen sooner rather than later right so.

D

If you're, looking at february 3rd for the closing on the on the rfp and then as soon as.

D

You'll you'll set the date when you're going to look at that, probably as soon as you can yeah.

D

And I can't remember last year how long it took us. It was only one proposal, but we went.

D

Through and evaluated this year, hopefully we'll you'll have at least two or three, maybe five.

D

And your your criteria did get, hopefully it did get back in there. So it's just a matter of looking.

D

At it and evaluating it, but then the follow-up to that with a contract and uh enforcing what.

D

Was done um should be, you know, basically the the uh audit committee's uh purview, because it that.

D

Is the auditor reporting to um the council through the audit committee, not city staff, so all of the.

D

Steps um kind of need to be followed, but I think it's critical that the work session would happen.

D

Sooner rather than later, I I completely agree. I mean I imagine that that the week following.

A

uh The third, so the third is a thursday. So what is that? The sixth? Seventh, that the uh that we'll have.

A

A couple of intensive meetings- that's assuming that we've got several proposals to look at.

C

C

Before we request that work session with the city council- and maybe this is set out.

C

Somewhere, do we have a memo that we can put together or or poll that concisely lays out.

C

um Why the audit committee should have purview over not only selection but contract negotiation.

C

And then any other thing we're looking for whether it's an interim meeting during the audit.

C

Auditing process and then a review you know to just to lay it out so that there's a handout.

C

For the city council, so we can be clear and concise in layman terms on you know.

C

On the case for why this makes sense yeah um we do not have that yeah.

A

As you're outlining it, I can see the great value in doing that, and so I would like to ask you.

C

You know and I'm happy to work with you, okay, because I I think yeah you know that's the case.

A

Study, that's the case to be made yeah good, and I do. I did want to add one other thing.

C

The vote we just took to go to the work session. First before we go to the state.

C

I think, because this is recorded and because we're official body on some level.

C

We should be clear on what we're going to the state for in that motion or not.

C

Threatening this or that, it's simply right clarification that we want the clarification.

C

Over the role of audit committees in the state of new hampshire.

A

I'm happy to reread that sentence. Okay, do you want me to do that? The purpose of these.

A

Submissions is to seek clarification of the role of the audit committee in the independent audit.

A

Of the city's financial records as raised in the december 15 minutes, okay, perfect.

D

And if I might add something there, uh when you and I esther would probably be more.

D

Knowledgeable on this, but when you request this audit session, you're, probably going to have to.

D

Have all your documentation um ready to go ready to go because there you know the council is going.

D

To know- and the mayor is going to want to know why you're requesting this- this definitely yeah so.

A

So jesse we've got some work to do.

A

And uh and just petra and esther know, this hawk knows this: I love to work on the weekends.

A

At two in the morning, what it doesn't matter, can I reassign it to you.

A

Oh that's funny, but I I really value your presence um and speaking of that.

A

Then I'd uh well I'd also like to set up our next meeting, because we only have a couple minutes.

A

uh For the day after the hack for so the uh june 14, because it wasn't the so be june, 14th.

A

I'm sorry I said june, I'm thinking about the summer, I'm sorry january 14th at 10 a.m.

A

And we will have the act for presentation fresh in our minds at that point.

A

And uh and hopefully we'll have those two new council members on board.

A

Are you traveling jesse? I can't do. That is the the only time that week I can't do 10 a.m. On the 14th.

A

Okay, what would work better for you? uh I can do noon. um The building I think closes at.

A

One the city hall closes at one on fridays. um That's what I want. What does yeah okay.

C

I can do that, like I'm booked from 10 to 12, when it's something I can't miss on that friday.

A

Well, we could do the following monday.

C

Yep, what day is that that's uh 15 17.

A

That's martin luther king birthday. It's probably closed. Then too.

A

Yeah, so I guess we go to the 18th at say: 10.

C

Yep that works for me I'll check my kill. Okay. Thank you.

A

Esther are you still there no she's gone. I tried twice.

D

I don't know what happened with our technical difficulties there, I'm not getting through either.

A

Well so then, I have just in the minute remaining.

A

And unfortunately, counselor kennedy isn't here so.

A

D

Oh, thank you, I'm not getting that anything. um The only other thing that um I would ask is.

D

I know today and the last couple meetings we have not had any um any public present to make.

D

Any comments, but um that you would at put in your agenda public comment. If so, if people are.

D

Interested in coming and speaking, um who would that be so that should go before roll call.

A

Or after roll call after rule call, but before approval yeah, it's it's a you know it's up to you.

A

I can look at how it goes with a city.

A

A

A

What you have in front of you is small, but in no way in this, the size in no way signifies our.

A

Depth of appreciation for all you've done. Thank you.

A

And I just don't know how the heck you counselors- and this is true for councillor kennedy.

A

How the heck you do what you do, because it's it really is a full-time job. It is, I would agree.

C

We look forward to seeing you right here: yeah, that's right, yeah! We I'm hopeful. I could make.

D

Your meetings, yeah and uh we will need the help. Thank you, yeah yeah. We really.

A

Appreciate everything you've done and and you're you're the reason for this committee existing so.

A

Exactly yeah well, the whole purpose of this is to get the to get the city back into compliance with.

D

Its charter exactly right and that's the call, that's why uh you know it's very concerning.

D

That we're having to go through this again um and we we went through it and we I mean.

D

If you look back from when we first started this to what we did, it was just it was. It was amazing.

D

With the help of city staff, obviously we went through the rfp, we got the contract and the person.

D

Came in and everything went smooth yeah. um We were not involved as we should be in the audit process.

A

Itself, correct, correct, but still it was. um It was light years ahead of where it was where it was.

D

And it and that it was bringing everything into compliance so um that that was my main goal and.

D

I hope we get back to that again. Absolutely that would be wonderful, okay, jesse you and.

A

I have some work to do and so when, when when are we asking for this session again ah monday.

C

um You know I'll put together.

C

uh Hopefully, it's you know an outline okay and then we can flush it out and then I'll send it.

C

Over to you, and we can work through it great. Thank you. So the other thing you might want to.

D

Keep in mind is the the new council's first uh official council meeting is, I think, the 24th of.

D

January right, um so I don't. I don't know where you are on dates, but um it'd probably be.

D

A good idea to get it on the docket if you can as a request, but it would be after the.

A

24Th, I would guess right right so sometime I mean that week uh the 25th through the 28th.

A

It's usually in the evening right so.

A

um Oh, so you you request a work session that has to be approved by the city council.

D

Or the mayor yeah, okay, yeah, I mean the authority comes from the mayor.

A

So it whatever we submit has to really be. You know to the honorable mayor and um in the in.

A

The sen and the city council, but it's the mayor, who really dictates yeah, okay or.

D

And this would be a little bit of pressure. um You could have at least an outline or something done.

D

For your january 13th meeting that you're for the akron you're you're going to be discussing on it.

D

In that uh in that meeting so well, I consider that now we're we're after our hour, but but it.

A

This is under all their business. I guess um um to what extent do you think, given.

A

uh The city manager's email that I gave you copies of um it doesn't sound to me.

A

As if there's to be much of an opportunity for us to contribute to that at that meeting,.

D

I that I don't know, I don't know if there's going to be.

D

Public comment, I don't, I don't have any idea, we did. We we, we probably won't know until the.

D

Agenda comes out yeah, but I guess you could make the request of uh of the mayor since this.

D

Is a critical part of your uh of your duties that were assigned to you by the council right.

C

Now that meeting would involve the city manager, it wouldn't just be.

C

The audit committee in this well, this one is going to be the city council.

D

I would kind of suggest that, after the presentation by the auditor, the external.

D

Auditor um that maybe could be discussed at that point in time, because that would be the.

D

Next logical step right, hopefully, given the flow that we would have a few minutes to make comments.

D

And and may just make your request to the to the mayor and and the council that to uh to set.

D

Up a work session, so this can move forward. Yes, but the work session is going to be after the.

A

First meeting and- and we want to get our piece fleshed out before we make that request.

A

A

Is there any other business.

A

Councilor kennedy is offline. I could try to call her again to to check out.

D

Question: okay, we see we seem to have like I have to get this to this. Other president, a little bit.

A

Do you know when she's coming back? I don't probably never not until the kayaks launch.

A

Okay, um good! Well, if there's no other business! Okay, you hear a motion to adjourn so moved.

D

It's welcome all in favor. Aye aye opposed your adjourn: okay, you're 20 21.. Thank you very much.